Here it is Plain and simple.
You buy a dated 1 bedroom 1 bathroom, remodel it, and convert it into a 2-bedroom rental unit on Airbnb and VRBO. It’s that simple and that easy.
You purchased under market value, you save on the down payment because a 1-bedroom is cheaper than a 2-bedroom, you make more Gross Rental Income because 2-bedroom units generally outperform 1-bedroom units on rental demand, and to top it off, you save on the remodel because it’s cheaper to remodel a 1-bedroom rather than a 2-bedroom.
Here’s How to Beat the Short-Term Vacation Rental Airbnb and VRBO game.
By buying a 1-bedroom instead of a 2-bedroom, you’ll have cheaper upfront investment (less down payment cash out of your pockets). This means you can buy more units quicker, of course, based on the rate at which you save cash for investment.
With the extra $64,442 cash, that you saved throughout the entire process—on the purchase, remodel and additional Profit from the increased Gross Rental Income, you can now buy a new 1-Bedroom Myrtle Beach Oceanfront condo every year!
The plan is to buy one Myrtle Beach Oceanfront Condo per year so that at the end of 10 years, you own 10 units. With the average 2-bedroom at the Caribbean Resort bringing in $61,899 annually, that’s $618,990 in Gross Rental Income—on average—from all 10 of your units.
If you purchase them with cash, that’s $22,479.49 in profit per unit for a total of $224,794.9 in annual profit from all 10 of your Myrtle Beach Oceanfront Condos.
If you purchase with financing, that’s still $4,503.49 annually in profit per unit for a total of $45,034.9 in annual profit from all 10 of your units.
But don’t miss how much these units appreciated in the past decade! Over $88,114 in appreciation. That’s $8,811.40 in annual appreciation.
Additionally, you can depreciate these units based on the appraised value. Assuming that the appraised value is the same as the average purchase price of $211,522, that’s $7,691.71 in annual deprecation for reducing your overall tax burden.
And finally, don’t forget the savings you make when using your own unit for your vacation stay!
How the Ultimate Myrtle Beach
Oceanfront Investment Condo Strategy
Works.
First, You Win on Purchase Price.
Let’s Compare the purchase price of a 1-bedroom Oceanfront Condo with the purchase price of a 2-bedroom at the Caribbean.
The average price of an Oceanfront Unit at the Caribbean Resort in 2024 is $211,522.
The average price of an Oceanfront Unit at the Caribbean Resort in 2024 is $352,500.
That’s a difference of $140,978.
You’re keeping $140,978 in your pocket on average when purchasing a 1-bedroom unit instead of purchasing a 2-bedroom unit.
This translates in a cheaper down payment by as much as $35,245. This is the money you need to save for the down payment of your next investment. Of course, that down payment being $52,880.50, the next 1-bedroom oceanfront condo you’ll be converting to a 2-bedroom.
By reducing your purchase price now, you’re setting yourself up later (next year) in accordance with a long-range real estate investing plan that will build your real estate portfolio.
You Win on Profit from Gross Rental
Income.
The average Gross Rental Income for a 1-bedroom unit at the Caribbean Resort is $43,702.
The average gross rental income for a 2-bedroom unit at the Caribbean Resort is $61,899.
That’s an increase in Gross Rental Income of as much as $18,197.
On average, 2-bedroom owners are making as much as $18,197 more and they have roughly the same expenses as 1-bedroom owners. It’s a no-brainer to convert your 1-bedroom into a 2-bedroom oceanfront unit.
The extra $18,197 at the end of each year translates into the rest of the down payment money you’ll need for next year’s Myrtle Beach Oceanfront Condo purchase.
Remember, at 25% down, and a $211,522 purchase price, you’ll only need $52,880.50 down on your next 1-bedroom Myrtle Beach Oceanfront Condo loan. Between the $35,245 you saved in down payment money by purchasing a 1-bedroom instead of a 2-bedroom, and the $18,197 you made in additional Gross Rental Income by converting your 1-bedroom to a 2-bedroom unit, after your first year, you’ll have $53,442, which is just above the amount of money you need for next year’s 1-bedroom Myrtle Beach Oceanfront Condo purchase.
All you have to do is be disciplined enough to say “no” to distractions for the next year, and you have the down payment money you need to win at your very own long-range real estate portfolio expansion plan.
You buy a dated 1-bedroom Myrtle Beach Oceanfront Condo below market value, you remodel and convert it to a 2-bedroom unit, and then you simply repeat next year.
Before we move on to the how much you save in remodeling a 1-bedroom instead of a 2-bedroom, don’t miss the stellar performance of 1-bedroom unit 1231.
Did You Miss the Gross Rental Income on
Unit 1231 at the Caribbean Resort?
This is worthy of mention. Unit 1231 outperformed the average gross rental income by $38,131! This is proof of what it’s like to have a Myrtle Beach Oceanfront Condo that’s in the top 5% of Airbnb listings.
You Win On the Remodel.
Your typical Myrtle Beach Oceanfront Condo 1-bedroom remodel costs $25,000 while you’re typical 2-Bedroom Oceanfront Condo costs $35,000. That’s a savings of as much as $10,000 on your remodel expenses.
Now, when you add in the additional remodel savings of $10,000 from purchasing a 1-bedroom instead of a 2-bedroom Myrtle Beach Oceanfront Condo, you’ve just thrown cash back into your real estate portfolio expansion plan, giving you even more money for the down payment on your next 1-bedroom Myrtle Beach Oceanfront Condo.
Call today to discuss your next Oceanfront Condo purchase in the Myrtle Beach Real Estate Market: 843-360-1737
Disclaimer: All information given is meant to be educational. I am only passing on historical information shared with me by owners, rental companies, and various publications. Additionally, I am not guaranteeing these numbers, nor can I guarantee future rentals or appreciation. This information is not intended to replace your own research, or to provide legal, investment, or financial advice. Please consult an attorney for legal advice.
For expert advice and to explore available
opportunities, call 843-360-1737 today.